US Masters Residential Property Fund (URF) Q4 2024 earnings summary

Executive summary

• Achieved strongest quarterly result since sales program reimplementation, closing US$51.68M in Q4 sales across 43 transactions; full-year sales reached US$150.97M across 104 transactions, meeting the annual target.

• 2025 sales target set at US$200–225M, reflecting continued focus on accelerating capital returns to security holders.

• Portfolio appraisal for H2 2024 showed a -US$8.1M (-1.8%) decrement; full-year decrement was -US$12.8M (-2.35%), mainly due to declines in New Jersey and New York segments.

• Adjusted FFO loss for 2024 was A$8.4M, reflecting ongoing portfolio sell-down and associated holding costs.

• US tax structure changed from REIT to C-Corp post year-end, reducing net deferred tax liability from $40.2M to $3.5M.

Financial highlights

• Q4 2024 sales: US$51.68M (43 properties); full-year 2024 sales: US$150.97M (104 properties).

• Same-home Net Operating Income (NOI) for 2024 was US$9.4M, up 14% year-over-year, driven by rental growth.

• Pre-tax Net Asset Value (NAV) at 31 Dec 2024: $0.64 per stapled security ($0.58 post-tax).

• Unadjusted FFO loss: A$27.2M; adjusted FFO loss: A$8.4M, up A$1.8M from 2023.

• G&A expenses: A$12.7M, flat year-over-year; normalized G&A down 5% from 2023.

Outlook and guidance

• 2025 sales target set at US$200–225M, with a sales pipeline of US$156.3M as of year-end.

• Ongoing focus on asset sales and capital return; continued reduction in debt and buybacks planned.